Why is Chapter 7 Called a Straight Bankruptcy?
A Chapter 7 filing is often referred to as a straight bankruptcy because a repayment plan is not required like in a Chapter 13 filing. Some of the debtor’s assets will be exempt from a Chapter 7 proceeding, and some others won’t. Those assets that aren’t exempt will be gathered by the bankruptcy trustee and sold to pay legitimate claimants at least some of the amount that the debtor owes them. In a Chapter 13 proceeding, a plan would be approved by the trustee, and debts or portions of them would be paid bo creditors by the debtor over the course of three to five years.
Chapter 7 Offers Quicker Discharge
A Chapter 7 proceeding should also be quicker than a Chapter 13 proceeding. A debtor in a Chapter 7 proceeding can typically be discharged in bankruptcy in six months, while a Chapter 13 action could last as long as any repayment plan that’s approved by the court. A Chapter 7 petition should also be significantly less expensive than a Chapter 13.
Don’t Try to File on Your Own
You don’t want to try and file either a Chapter 7 or Chapter 13 bankruptcy on your own. You’re likely to make mistakes that will keep you coming back to court or forget about a creditor that you want to be included In the proceeding. In and around Orange County, a knowledgeable and experienced bankruptcy law Orlando attorney, or attorney in your area, will be of great help in filing and completing a personal bankruptcy. You’ll be doing yourself a favor by taking the pressure off.